Jacobs beats Q3 earnings expectations, raises full-year guidance

DALLAS - On Tuesday, Jacobs Solutions Inc. (NYSE:J) reported third-quarter earnings that exceeded analyst expectations, despite a slight revenue miss.

The engineering and professional services firm's shares rose 1.49% in pre-market trading after the earnings release.

The company posted adjusted earnings per share of $1.62 for the quarter ended June 27, 2025, beating the analyst consensus of $1.53. Revenue came in at $3.03 billion, slightly below the consensus estimate of $3.07 billion but up 5.1% compared to the same period last year. Adjusted net revenue, which excludes pass-through costs, increased 7.0% YoY to $2.23 billion.

Jacobs' backlog grew 14.3% YoY to $22.7 billion, with a book-to-bill ratio of 1.2x for both the quarter and trailing twelve months, indicating strong future business prospects.

"We delivered excellent third quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting," said Bob Pragada, Jacobs' Chair and CEO. "Within I&AF, growth was led by the Life Sciences, Data Center, Energy & Power, Water and Transportation sectors."

The company highlighted particularly strong performance from PA Consulting, which saw revenue increase 15% YoY due to higher public and private sector spending.

Jacobs has been actively returning capital to shareholders, repurchasing $101 million of shares during the quarter and a record $653 million fiscal year-to-date, representing approximately 4% of outstanding shares.

Based on the strong performance, Jacobs raised its fiscal 2025 adjusted EPS guidance to a range of $6.00-$6.10, compared to the previous consensus estimate of $6.02. The company also narrowed its outlook for adjusted net revenue growth to approximately 5.5% over fiscal 2024.

"We're pleased with our strong execution to deliver solid Q3 results," said CFO Venk Nathamuni. "We again saw meaningful sequential improvement in GAAP EPS and net income margin, with year-over-year growth in adjusted EBITDA, adjusted EBITDA margin and adjusted EPS."

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